Course Name (short): Cost & Managerial Acct 1B
School: All Sheridan Schools
Program(s): Business Admin Accounting
Program Coordinator(s): Lorraine Cipparrone
Course Leader or Contact: Alison Feierabend
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version: 27.0
Status: Approved (APPR)

Calendar Description
This course emphasizes the use of accounting data by managers for internal use including decision making, planning and control and non-routine planning. Topics include: relevant costs, flexible budgets, fixed overhead analysis and labour, overhead and cost allocations.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course is taught in a mobile computing environment.

Detailed Description
This course is a continuation of managerial accounting with an emphasis on cost control and analysis of internal accounting data to plan for future operations and to evaluate past performance.

Program Context

 Critical Performance:

By the end of this course, students will have demonstrated the 
ability to use managerial accounting reports and analytical tools to 
plan, control and evaluate an organization.  
   
Learning Outcomes:

To achieve the critical performance, students will have demonstrated 
the ability to: 
 
1. Develop a product's cost by determining the amount of direct 
   material, direct labour and manufacturing overhead to apply to a  
   unit of product.

2. Prepare a formal departmental production report applying 
   appropriate costing techniques in a process costing system.

3. Prepare the journal entries required to record inventory flow in a 
   process cost system.

4. Use activity based costing as a tool to aid decision making.

5. Compare product cost per unit under the traditional vs. activity 
   based costing approach.

6. Allocate service department costs using either the step or direct 
   method.

7. Prepare and interpret various forms of income statements.

8. Use cost variances as a tool for improved decision making and 
   evaluation of key personnel.

9. Create a flexible budget and develop an overhead performance 
   report for use in directing and controlling a corporation.

10.Identify relevant costs and develop decision making models that 
   can be used to support recommendations made to the management  
   team  to improve overall profitability of a company.

Assignments (Connect 15%, Group work 15%)            30%
Mid-term Exam (Modules 1 through 4)	             30%
Final Exam (Comprehensive Modules 1 through 7)	     40%
Total	                                            100%

*These assignments are either completed online, outside of class 
time or in class. Failure to complete an assignment by the due date 
will result in a zero on that assignment.  No makeups or extensions 
are available. For each group assignment, all parts must be attempted
or a mark of zero will be given for the entire 
assignment. 

In addition to achieving a minimum 50% overall grade, a student 
must have a combined average of at least 50% on the non-Connect 
components of the evaluation plan in order to receive credit for 
this course.

Garrison, Chesley, Carroll, Webb & Libby, Managerial Accounting,
(10th Canadian ed.), McGraw-Hill & Ryerson

Students will be required to use Connect.  It is included with new 
copies of the textbook.  Connect also includes an e-book so 
purchasing a hard copy of the textbook is optional.  Connect can be 
purchased separately directly from the McGraw-Hill website.

Spraakman, Current Trends & Traditions in Management Accounting Case
Analysis; (6th ed.), Captus Press

Module 1:  Systems Design - Process Costing

- Compare and contrast job order costing and process costing
- Prepare process cost flow journal entries
- Compute equivalent units of production using either the 
  weighted average 
- Prepare production cost report using either the weighted 
  average method
- Assignments

Reference: Chapter 6

Module 2: Service Department Allocations

- Allocate service department costs using various methods
- Assignments

Reference: Appendix 11A

Module 3: Activity Based Costing
- Assign costs to cost pools using a first-stage allocation
- Assign costs using a second-stage allocations
- Calculate product and customer margins
- Compare product cost per unit using traditional and activity-
  based costing methods

Reference: Chapter 7, Appendix 7B


Module 4: Variable Costing - A Tool for Management 
-Prepare an income statement using variable costing
-Prepare an income statement using absorption costing
-Prepare a reconciliation to explain the difference in income under  
 variable vs. absorption costing
-Assignments

Reference: Chapter 8

Mid-term Exam (30%) - Chapter 4, Appendix 11A, Chapter 7, 
Appendix 7B and Chapter 8 (Modules 1, 2, 3 & 4)

Module 5: Flexible Budgets
- Create a flexible budget
- Determine appropriate measures of activity
- Describe how variable and fixed cost behaviours affect the 
  flexible budget
- Prepare an overhead performance report
- Assignments

Reference: Chapter 9 (pages 363-367)

Module 6: Standard Costs, variance analysis and overhead performance 
reports

- Apply management by exemption
- Set standard costs
- Explain the significance of the denominators in determining 
  standard costs
- Compute direct material variances, direct labour variances, 
  variable overhead variances and fixed overhead variances
- Interpret direct material variances, direct labour 
  variances and fixed overhead variances
- Prepare and interpret and overhead performance report
- Prepare journal entries to record standard cost and variances
- Assignments

Reference: Chapter 10 and Appendix 10B

Module 7: Relevant Costs for Decision Making

- Describe how various cost concepts are used in decision making
- Identify costs as relevant or not relevant to decisions
- Using the differential approach to decision making 
- Perform an analysis to determine if a segment or product 
  should be dropped
- Perform an analysis to determine if a product line should be 
  purchased or made
- Perform an analysis to determine if a special order should be 
  accepted
- Perform an analysis to determine how to best utilize a 
  constrained resource
- Perform an analysis to determine if a joint product should be 
  sold or processed further
- Assignments 

Reference: Chapter 12

Final Exam (40%) - Comprehensive